Vietnam Insight

▶The market experienced selling pressure in the Tuesday trading session when it approached the 1,340 level and closed with a slight decrease in point. Liquidity continued to remain at a high level, and foreign investors continued their net-selling streak, although with a medium value.

▶ At the end of the trading session, the VN-Index decreased by 5.29 points (-0.4%), reaching 1,330.97 points; the HNX-Index increased by 0.26 points (+0.11%), reaching 247.03 points. Market liquidity reached VND 21,560 billion, which was equivalent to about 1,028 billion shares being traded. Foreign investors net sold VND 435 billion on HOSE, mainly concentrated in FPT, SSI and SAB.

▶ Technical perspective: The VN-Index experienced a minor correction with slightly reduced trading volume. The index opened positively, extending the previous day's gains by 5 points, primarily driven by energy stocks. However, other sectors struggled to maintain momentum throughout the session. As the VN-Index approached the 1,350 - 1,360 resistance zone, buyers appeared to pause, potentially awaiting a technical correction before establishing new positions. Given the index's sustained 8-week uptrend, the anticipated volatility at this level could offer strategic entry points for investors.

In a negative scenario (less likely to happen), take-profit sellers aggressively sell and penetrate the important support level of 1,280-1,300 points. We consider this support level very important for the continuation of the upward trend, as the support signals have consolidated around this level from daily chart to weekly chart. A decisive downward move could negatively affect market sentiment

Strategy: The market has shown positive signals, breaking the sideways trading channel. VN-Index is likely to maintain the uptrend to reach 1,350 points. After many consecutive increasing sessions, VN-Index may alternate with decreasing sessions in the coming weeks. Investors can increase their positions in decreasing sessions featured with average liquidity and small spreads. In the negative case, if VN-Index fails to uphold 1,280-1,300 points, investors can reduce their proportions to manage risk.